BCA overlooks big super picture

The Business Council of Australia’s
Tony Shepherd
has called for a delay in the introduction of the increase in compulsory super contributions from 9 to 12 per cent (“Super increases ‘badly timed’ ", November 26). The timeline for its introduction means it will not reach 12 per cent until 2019. The increase will be phased in over seven years, starting July 2013 with a 0.25 per cent increase. Recent CoreData market research shows 58 per cent of Australians think the timing of the phase-in is too slow.

Shepherd’s argument that increasing super places a burden on the government budget does not appear to consider the corresponding increase in tax revenue from super fund earnings. It also forgets the big picture, with a rapidly ageing population 9 per cent simply isn’t enough to provide retirement incomes that will reduce the reliance on the Age Pension.